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NEW QUESTION 36
MWB operates serviced offices in central London. Rock entered a contractual licence with MWB to occupy office space in Marble Arch and had accumulated licence fees in arrears. The original licence agreement contained a 'No Oral Modification' clause that said: 'All variations to this licence must be agreed, set out in writing and signed on behalf of both parties before they take effect'.
After 6 months, Rock director re-negotiated to extend payment period over phone call and MWB credit controller agreed his proposal. Is this agreement considered as an effective variation to the original licence agreement?

  • A. No, because Rock director assumed that the variation was effective and convinced credit controller to believe it
  • B. Yes, because parties who agree to altering the original contract orally despite a 'No Oral.
  • C. No, because the mechanism for variation has been set out in the original contract
  • D. Yes, because the credit controller had agreed with Rock director's proposal
  • E. Modification' clause, must have intended to dispense with the clause

Answer: C

Explanation:
The license can be amended during its lifespan. However, in this case, it already has a clause allowing for mechanism of variation which sets out who can authorise changes and prohibits any oral variation. Therefore, the agreement between Rock's director and MWB credit controller is not an effective variation to the license.
Reference:
LO 1, AC 1.1

 

NEW QUESTION 37
A large company supplies a lot of products. Their shipments are often delayed and customers are not satisfied. Which of the following KPIs is most likely to be applied to this situation?

  • A. OTIF delivery
  • B. Delay damages
  • C. Consignment stock availability
  • D. Technical support

Answer: A

Explanation:
If the deliveries often delay, buyer should use KPI to measure how many missed deliveries there are and the percentage of total missed deliveries on total number of deliveries for period. OTIF (one-time in-full) delivery might help.
Consignment stock availability means that the supplier holds adequate range/number of units of stock to offer a reliable service Delay damages are the consequences caused by delay of deliveries Technical support is the acceptable quality of technical information/support provided by supplier for goods supplied.
LO 2, AC 2.2

 

NEW QUESTION 38
Which of the following are reasons why a purchaser wants to embed a subcontracting clause into the main contract? Select TWO that apply:

  • A. To keep main contractor liable
  • B. To condemn whole liabilities to subcontractors
  • C. To reduce the main contract complexity
  • D. To induce the conflicts between the main contractor and subcontractors
  • E. To improve supply chain transparency

Answer: A

Explanation:
There are number of reasons why the purchaser will want to control the supplier's subcontracting:
- Supply chain transparency: Normally the purchaser has invested a lot of effort into selecting the right contractor. However, the main contractor's selection of subcontractor might not be in such careful manner, which may result in poor performance. Purchaser must know who subcontractors are. Controlling the subcontracting process can help the purchaser control the outcome.
- Contract terms: the purchaser's requirements must be reflected in the subcontracts. The subcontracting clauses may require the main contractor to do this.
- Liability: the main contractor may subcontract the whole or a part of its liabilities. Subcontracting clause may bind the contractor to be liable with the work, it cannot just blame the subcontractor for any faults.
Reference:
LO 3, AC 3.2

 

NEW QUESTION 39
Which of the following are typically included in an SLA? Select TWO that apply:

  • A. KPI details
    Correct)
  • B. Requirements for packaging
  • C. Service definition
  • D. Product's lifespan
  • E. Code of conduct

Answer: A,C

Explanation:
The core elements of an SLA are set out below:
- Service definition
- Quality definition
- KPI details
- KPI management response
- Operational performance and management response
- Constraints or mitigating factors
Reference:
LO 2, AC 2.2

 

NEW QUESTION 40
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